How will a United States economic collapse affect Asia?
First of all, the US economy is not going to collapse. It’s not even clear we’re in a recession. The great depression was exacerbated by a fledgling fed that did exactly the opposite of what they should have done. That is, they took liquidity out of the system rather than adding it. Regarding your question, a collapse of the largest economy in the world (we are four, some think five times larger than China in GDP) would send the entire world into a depression. Since we would presumably default on our treasury bonds, of which China and Japan hold the most in the world, countries who hold our bonds as foreign reserves would experience a crisis of liquidity. Also, their export markets would dry up overnight and there would be a run on their banks. It is difficult to judge, but Asian countries would probably be worse off than the US.
